Written by Nicholas Vetrisek
Palomar Health announced last week that 317 healthcare workers will be laid off. The two main reasons cited for the lay offs are sharply declining revenues and lack of patients due to the coronavirus.
The hospital has stated that patient visits have been cut in half since the outbreak, and they lost $5.7 million in March. Palomar Health added that losses from April are expected to be worse, with future projections being uncertain at this time.
More than 300 employees from Palomar Health are out of a job Wednesday due to the financial impact of the coronavirus pandemic. https://t.co/nHGmDgpiCL
— FOX 5 San Diego (@fox5sandiego) April 30, 2020
Palomar Health is not the only healthcare provider feeling the effects of the virus, as UCSD Health Center has also lost a staggering $50 million.
The 317 workers laid off are roughly five percent of the hospital’s workforce and most are part-time. They will receive a severance package and are immediately eligible for unemployment.
To help ease the burden, hospitals are now beginning to be allowed to perform elective procedures. These procedures are some of the most profitable for hospitals, so this change is desperately needed.
According to a statement by the hospital, Palomar Health “will resume surgical procedures based on the availability of personal protective equipment and virus testing, but the loss of revenue from shutting down elective surgeries for the past six weeks cannot be recovered quickly.”
“These are extremely tough decisions that are taken very seriously because we know they affect the livelihood of our employees,” said Palomar Health President and CEO Diane Hansen. “However, the sooner we make these tough decisions, the sooner we will be able to stabilize our business and get back on the road to recovery. It is our responsibility to ensure Palomar Health provides high-quality medical care to our community during and after this pandemic.”
The entire economy has been hit by the coronavirus pandemic and hospitals are clearly no exception. Allowing hospitals to perform elective procedures will help them recover from the economic hardship they have been subjected to and ensure that lay offs like this no longer happen.
